Shortlist.net.au reports on May7th...
"Adecco Australia and New Zealand posted an impressive 47% constant currency rise in operating profit during the March quarter to €2 million ($A2.9m at March 31), on sales up 8.3% (cc) to €91 million ($A133m).
Adecco Australia and NZ chief executive Jeff Doyle told Shortlist the local business had also increased its operating profit margin by 50 basis points.
The improved performance came on the back of solid growth in Adecco's general staffing operations, Doyle said, as well as strong performances from its recently-acquired Judd Farris brand, and the Ajilon business in WA.
"We've also again had some good growth in permanent recruitment, and some excellent reductions in day sales outstanding. March was specifically strong [in terms of debtor days]."
Doyle said Adecco Australia expected continued year-on-year sales and earnings growth in the current quarter.
Office and industrial sales flat, professional business rebounding Globally, Adecco posted a 1% (cc) drop in revenue to €3.96 billion and an 8% (cc) gross profit decline to €712 million during the quarter.
Despite the lower sales figures, EBITA rose 13% (cc) to €113 million, and operating profit was €100 million, compared to a figure of €30 million a year earlier.
The company reduced its SG&A costs by 11% organically, to €599 million during the quarter, largely through closing 790 branches and cutting headcount by 4,800 FTE employees.
Adecco currently has 31,000 FTE employees in approximately 5,500 branches.
CEO Patrick De Maeseneire said demand had increased strongly in Adecco's key general staffing markets of France and North America.
He said price pressure on recruitment firms remained high, "but we maintained our discipline and were able to achieve a gross margin of 8%, also thanks to our increased exposure to professional staffing".
Overall, Adecco's office and industrial recruitment had flat revenue during the quarter, he said, while the professional recruitment business grew sales by 29% (cc).
Within the professionals division, IT revenue increased 51% (cc), engineering and technical was up 20% (cc), and finance and legal rose 58% (cc), while revenue declined by 5% (cc) in sales and marketing recruitment.
The Human Capital Solutions talent management and outplacement business also saw sales fall 19% (cc).
De Maeseneire said Adecco's growing exposure to higher-margin recruitment sectors, ongoing expense controls and lower cost base meant the company was well-positioned to continue lifting its operating profit margin during the remainder of the year.